On May 1, Coronado, Inc. factored $1,472,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Coronado was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb any credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts.